- Tinubu Gets BOI Commendation as N250bn Bond Attracts Strong Investor Demand
- Olasupo Olusi said the strong investor response demonstrated confidence in both the bank and Nigeria’s domestic capital market
- BOI said the transaction also demonstrated the growing capacity of Nigeria’s domestic capital market
President Bola Ahmed Tinubu has been commended by the Bank of Industry (BOI) for his leadership and support following the oversubscription of the bank’s N250 billion Series 1 Fixed Rate Bond within five days.
Eko Hot Blog reports that the bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
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BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response demonstrated confidence in both the bank and Nigeria’s domestic capital market.
Olusi attributed the successful subscription partly to incentives approved by President Tinubu to encourage investors, saying the President’s support provided leverage and sent a positive signal to the market.
“As a Development Finance Institution, we could not have received the strong investor demand for the bond in five working days without the support of President Tinubu, who gave his executive approval for various incentives to encourage investors,” Olusi said.
He added that the development was further evidence of the President’s commitment to strengthening Nigeria’s productive sector.
According to the BOI chief executive, the objective of the transaction is to convert investor confidence into increased access to long-term financing for Nigerian businesses, with expected benefits including industrial expansion, job creation, stronger domestic value chains and economic diversification.
Olusi also disclosed that the N100 billion fund approved for BOI by President Tinubu would be used to blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.
The bank said the bond would broaden its funding sources by complementing its established presence in international capital markets with increased mobilisation of long-term funds from domestic institutional investors.
BOI said the transaction also demonstrated the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.
The bank and its transaction advisers, however, said final subscription and allotment figures would not be disclosed at this stage because the final allotment remains subject to approval by the Securities and Exchange Commission.
According to the bank, the immediate significance of the transaction lies in the strength of investor demand, the pricing achieved and the breadth of the investor base.
It said the development reflected sustained institutional appetite for high-quality, long-term domestic assets and reinforced the capacity of Nigeria’s capital market to mobilise development-oriented funding at scale.
Proceeds from the bond issuance will strengthen BOI’s capacity to provide long-term financing to eligible enterprises across priority sectors, supporting productive capacity, local value addition, employment and economic diversification.
The successful transaction marks another milestone for Nigeria’s domestic market for long-term development capital and further strengthens BOI’s position as a repeat issuer in the capital market.
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